Eric Peters: “This Is The Nightmare Scenario For The Next Fed Chair”

While we will have much more to share from the latest weekend letter by One River’s Eric Peters shortly, we found the following section on inflation vs asset bubbles – a topic which BofA’s Michael Hartnett has been focusing extensively on in the past year and which serves as the basis for the “Icarus Rally” – particularly notable as it explains all of today’s comments from Janet Yellen and other central bankers, discussing why it is only a matter of time before inflation returns, as the alternative, as Peters’ explains, is a world in which yields simply refuse to go up, leading to a nightmare scenario for the next Fed chair, who will be forced to pop the world’s biggest asset bubble.
Excerpted from the latest weekend notes by One River CIO, Eric Peters:
‘Why are we not experiencing deflation?’ he asked. ‘How can the top five stocks in the Nasdaq reduce US GDP but we feel better off?’ he asked. ‘Why are Americans buying no more cars today than in 1978 when our population is 100mm higher?’ he asked. ‘Why compare today to a world of combustion engines when we have so many more interesting things to do without moving an inch?’ he asked.

This post was published at Zero Hedge on Oct 15, 2017.